Gold falls 1% on the October jobs report that elevates expectations that the Federal Reserve could keep interest rates higher for longer, boosting the dollar. However, the yellow metal is still headed for a weekly gain.
U.S. nonfarm payrolls jumped by 165,000, for October, handily beating the forecasted 59,000 increase, per this morning’s Bureau of Labor Statistics report. The unemployment rate nudged down to 4.1%, compared with the forecast for 4.2%. As closely-watched indicator on the state of the economy, this jump signals the likelihood of a possible interest rate hike from the Federal Reserve in December, leading to this morning’s drop in the price of gold.
Futures remained elevated for the week as markets continue digesting the results of the U.S. midterm elections, in which Democrats swept races in formerly solidly Republican strongholds in an apparent repudiation of the Donald Trump administration. Equity markets climbed the day after the election only to tumble Thursday as tech stocks tumbled on worries of a potential slowdown in data center construction following big Democratic wins.
Investors shifted their focus back to inflationary concerns Friday as oil prices rallied.
December gold gained 1% Thursday to settle at $4,113.50 an ounce on Comex, and the front-month contract rose 5.5% in the first four days of the week. Bullion dropped 6.9% last month after losing 6.6% in September and rising 9.1% in August. It’s down 5.2% so far this year after rallying 64% in 2025. The December contract is currently down $62.40 (-1.52%) an ounce to $4051.10 and the DG spot price is $4048.80.
The private payrolls report from ADP on Wednesday showed the number of jobs rose by 86,000 last month, slightly more than expected. Friday’s jobs report from the Labor Department comes after last week’s release of the personal consumption expenditures price index—the Fed’s favorite inflation measure—showed that inflation accelerated in September. The Fed closely watches both inflation and labor market data when setting monetary policy.
More than 76% of the investors tracked by the CME FedWatch Tool are betting that the Fed will rase rates by 25 basis points in December, with the rest expecting rates to remain unchanged. Last month, the Fed kept interest rates at 3.75% to 4.00%, though the vote included two dissensions. The Fed raised its benchmark rate by 25 basis points in September.
Higher interest rates are considered bearish for gold, making the yellow metal a less attractive asset for investment.
Goldman Sachs on Thursday cut its end-of-2026 gold-price forecast to $4,150 an ounce from $4,650 an ounce, citing the prospects of more hawkish monetary policy.
December silver futures added 0.2% Thursday to settle at $52.38 an ounce on Comex, and the front-month contract increased 6.3% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver plummeted 19% last month after falling 9.6% in September and climbing 16% in August. It is down 26% so far this year after rising 141% in 2025. The December contract is currently down $0.416 (-0.79%) an ounce to $51.960 and the DG spot price is $51.90.
Spot palladium rose 3.7% Thursday to $1,049.50 an ounce and has advanced 5.9% so far this week. Palladium fell 18% last month after losing 11% in September and rallying 5.7% in August. It’s down 35% in 2026 after rising 74% last year. Currently, the DG spot price is down $19.70 an ounce to $1030.50.
Spot platinum gained 1.8% Thursday to $1,528.50 an ounce and has gone up 6.3% this week. Platinum slid 16% last month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 25% so far this year after increasing 122% in 2025. The DG spot price is currently up $9.00 an ounce to $1534.40.
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